After paying for the wedding, about the only thing a
father has left to give away is the bride

—Unknown

With spring approaching, many wedding plans are in their initial stages.
Most weddings proceed without any major problems or interruptions. However,
this pleasant scenario does not always work out. A host of problems, some major,
can occur to disrupt this important event, including the following.

The bride or groom suffers an unforeseen injury or illness.

An immediate family member suffers an unforeseen injury or illness.

The bride or groom is unexpectedly called for military deployment.

The bride or groom becomes unemployed.

A hurricane, flood, tornado, or power outage disrupts the wedding or
honeymoon.

The wedding dress or wedding presents are stolen, lost, or damaged.

The best man loses the wedding ring.

The deposit for the caterer, venue, bridal boutique, or band is lost
because the service provider went out of business.

An injury occurs to a guest at one of the wedding events.

The wedding photographs or videos are destroyed or the photographer
fails to show up for the event.

Wedding insurance provides valuable protection from these events, since many
weddings are costly affairs. Nearly 5 million Americans are expected to tie
the knot this year, according to the
Association of
Bridal Consultants. The wedding industry is a $72 billion per year industry.
According to Bride's Magazine, the average
wedding cost $19,000 in 2000. A recent Association of Bridal Consultants study
indicated that the typical wedding includes four bridesmaids, four ushers, 125
to 150 guests, some kind of food and music, and costs between $14,000 and $20,000.
Wedding budgets over $100,000 are not uncommon.

Wedding insurance originated in England in the late 1980s and spread to the
United States in the early 1990s. Most wedding insurance sold in the United
States is brokered or administered through two main competitors—WedSafe and
Weddingsurance.

WedSafe Policy

Roger and Karen Sandau established
Wedsafe in 2000.
According to Ms. Sandau, the president and cofounder of this organization, the
idea grew out of the destination wedding they were planning in Maui, Hawaii
and their need for protection for this large investment. This company has experienced
tremendous growth during the last 3 years.

The WedSafe Wedding Insurance Policy is geared specifically to weddings.
It is brokered by
Robertson Taylor
North America and underwritten by
Markel North America. This prepackaged policy is available in four different
levels, with the only difference being distinct policy limits. The levels range
from $7,500 in limits (silver policy) to $50,000 in limits (diamond policy).
The premium for these policies ranges from $155 for the silver policy to $385
for the diamond policy. Higher limits are also available via a telephone or
in-person consultation. Their largest policy was recently written with a $700,000
limit.

The policy provides wedding cancellation and postponement coverage, which
pays for deposits forfeited and other charges paid for transport, catering services,
wedding accommodations, photographs, flowers, entertainment expenses, wedding
attire, and related items, subject to the following five exclusions.

Any circumstance known to the bride or groom at the policy inception
date that causes the cancellation or postponement of the wedding

Lack of funds, other than due to unemployment, after the inception date

Failure to notify the contracted provider and avoid the loss after it
was necessary to cancel or postpone the event

Named insured knowingly breaks a law, which renders it impossible to
hold the event

Weather conditions, unless the conditions are so extreme that they prevent
the bride, groom, close family members, or the majority of the guests from
attending the event

Examples of some actual excluded events include the following.

The bride or groom changes their mind about the nuptials.

The bride or groom violate parole and are required to go back to jail
or prison, disrupting the wedding.

The bride or groom's divorce from a prior marriage is not finalized
before the wedding.

A medical condition of the bride or groom existed at the policy inception,
but was unreported to the agent or insurer.

The WedSafe policy also provides additional
services coverage. This includes those services not originally anticipated which
are incurred to avoid an otherwise necessary cancellation or postponement, for
up to 125 percent of costs of services originally contracted. An example would
be the hiring of a photographer at the last minute for an additional cost, because
the original photographer went out of business.

The cancellation coverage and additional services coverage are also subject
to two extra exclusions. First, there is no coverage due to the voluntary decision
of the insured party not to proceed with the ceremony for a reason unrelated
to a covered peril (e.g., change of heart). Second, there is no coverage for
a loss arising from (a) self-inflicted injuries, alcoholism, insanity, or influence
of drugs; (b) any preexisting condition known to the bride or groom at the policy
issuance date; (c) pregnancy commencing before the policy issuance date, unless
the expected delivery date is more than 2 months after the wedding date; or
(d) any planned event that is against the advice of a medical practitioner.

In addition, this prepackaged policy includes the following areas of coverage,
with a range of limits depending on the policy selected.

Wedding photographs and video ($1,000 to $3,000 limit)—pays expenses
incurred to retake the photographs or video due to the nonappearance for
any reason of the photographer, loss or damage to the original film before
copies are received by the insured, and the nondevelopment of the original
film

Wedding attire ($1,000 to $3,000 limit)—pays the cost of replacing or
repairing the lost, stolen, or damaged attire, or any requisite rental charges

Wedding presents ($1,000 to $3,000 limit)—pays for any lost or damaged
presents up to 7 days before or 7 days after the wedding

Wedding rings ($1,000 to $3,000 limit)—covered for any cause within
the 7 days preceding the wedding

Loss of deposits due to the cessation of the provider's business ($1,000
to $3,000 limit)—covers any nonrefunded deposits paid for transport, catering
services, accommodations, photographs, flowers, entertainment expenses,
or wedding attire

Professional counseling ($500 limit)—pays if the bride or groom suffer
emotional stress requiring professional counseling as recommended by their
medical physician, following cancellation of the wedding

Each of these coverages is subject to specified exclusions. In addition,
there is a $25 deductible for each covered section.

Since this coverage is only offered on a prepackaged basis, insureds who
do not need particular coverages cannot delete any undesired insurance for a
premium credit.

The WedSafe policy also includes three general exclusions applicable to all
coverages—radioactive contamination, war including civil war, and terrorist
actions. Note, however, the terrorist exclusion does not apply if the act results
in direct physical loss or damage to the ceremony or reception site, or if the
act causes the cancellation of the insured party's transportation.

In addition, WedSafe offers a separate liability and property damage insurance
policy, underwritten by
Entertainment
Brokers International. This is commonly purchased because many wedding or
reception venues require couples to provide liability insurance, sometimes with
limits up to $1 million. This policy protects the wedding couple from liability
related to certain types of accidents occurring at the wedding or reception
that result in bodily injury or property damage. Possible accidents include
injury to guests or staff, facility damage, property damage, or alcohol-related
accidents (host liquor liability only). This policy also allows the named insured
to list up to three additional insureds beyond the bride and groom at no extra
premium. The standard policy costs $150 and includes liability limits of $1
million per occurrence, with a $2 million aggregate. It also includes a $250,000
third-party property damage limit (e.g., guest carelessly discards a cigarette
leading to a fire at the wedding reception hall).

Note, however, that if the wedding couple already has a homeowners policy,
this coverage may be extraneous. For example, if a guest is injured at the wedding
hall, most homeowners policies provide coverage. The wedding hall is an “insured
location” under the ISO Homeowners 3 (HO 3) policy, since an “insured location”
includes “any part of a premises occasionally rented to an ‘insured' for other
than ‘business' use.” In addition, “property damage” to property rented to an
insured is covered under the HO 3 if the loss is caused by fire, smoke, or explosion.
However, if guests become inebriated and inadvertently damage the reception
hall carpet, coverage is excluded under the HO 3. The WedSafe policy would likely
cover this loss, subject to a $1,000 deductible.

Weddingsurance Policy

Robert V. Nuccio, the President of R.V. Nuccio & Associates, developed Weddingsurance,
the first of its kind, in the early 1990s and upgraded it into a new component-based
product in 1997. Nuccio & Associates is the program administrator in all 50
states for this product, which is underwritten by Firemen's Fund. Unlike the
Wedsafe policy, this flexible product is also used for bar and bat mitzvahs,
reunions, graduations, anniversaries, and other private events. Weddingsurance
is popular in areas of the country prone to weather catastrophes, such as tornadoes,
hurricanes, earthquakes, and floods. Every agent and broker in the United States
can sell this product on a commission basis.

Common covered claims under this policy include the postponement or cancellation
of a wedding due to a sudden illness (e.g., appendicitis or heart attack), an
automobile accident, or the sudden disease of the bride, groom, or significant
family member. According to Mr. Nuccio, the closing of the airports after the
September 11, 2001 tragedy also resulted in numerous covered losses.

The policy offers nine specific coverages, including the following.

Cancellation or postponement

Additional expense

Photographs and video

Gifts

Rented property

Special attire

Jewelry

Personal liability

Medical payments

There are numerous similarities between the Weddingsurance policy and the
WedSafe policy. For example, the Weddingsurance policy includes what Mr. Nuccio
calls the “cold feet” exclusion, also known as the “change of heart” exclusion.
He believes this is the key exclusion in the policy, since many engagements
are called off prior to the wedding.

Weddingsurance's weather coverage is available only if the policy is purchased
14 or more days from the date of the event. However, the product can still be
procured (without weather coverage) 1 day before the wedding.

The Weddingsurance policy has a base premium of $195 for a $3,000 limit,
including a $250 deductible applying separately to each coverage. Unlike the
WedSafe policy, Weddingsurance's coverage and limits can be tailored to the
insured's specific needs. If the bride and groom already have homeowners coverage,
this offers a particular advantage. For example, wedding presents coverage may
not be needed because the homeowners policy grants worldwide coverage for this
type of property, up to the full personal property limit. (Note, however, that
the covered perils are more restrictive under the homeowners policy, as compared
to the Weddingsurance policy.)

This tailoring of coverage is easily handled through a self-rating worksheet
found on the organization's
website. This transaction can also be performed via the telephone.

In addition, the Weddingsurance product provides liability coverage within
its policy, unlike the Wedsafe program, which requires a separate policy for
this loss exposure. Weddingsurance's standard liability limit is $500,000, which
can be increased for an extra premium. In addition, Weddingsurance includes
third-party property damage at the full limit.

Who Should Purchase This Insurance?

This insurance may not be for every prospective bride and groom. If a small
or inexpensive wedding is planned, the cost of the insurance may outweigh the
benefits. An example might be a smaller wedding in which the bride and groom
have extensive financial resources, but with an extravagant honeymoon planned
for which they have purchased travel insurance.

If the bride and groom are flexible on the wedding particulars (e.g., the
number of wedding photographs or reception hall location), then this coverage
may not be necessary. However, Mr. Nuccio respectfully disagrees with this philosophy.
He believes that “only those that can afford to provide the same wedding twice
should pass on the policy.” He contends that few people fit into this category.
According to Ms. Sandau, wedding insurance is a good financial decision for
nearly all weddings, because the cost of weddings are relative, since a $10,000
wedding to one person may be more “expensive” than a $50,000 wedding to another.

For large and expensive weddings in which the bride and/or groom want everything
perfect (which is nearly always the case), this insurance may be a wise investment.
It is recommended that the insured get quotes and sample policies from more
than one organization to compare premiums and coverages for the right fit. Ideally,
this should be purchased far in advance of the wedding, before any expenses
are incurred.

Helpful websites for
Wedding Insurance

Organization

Description

Website

WedSafe

Provides wedding insurance, brokered
by Robertson Taylor North America underwritten by Markel North America;
separate liability coverage is underwritten by Entertainment Brokers
International

Opinions expressed in Expert Commentary articles are those of the author and are not necessarily held by the author's employer or IRMI. Expert Commentary articles and other IRMI Online content do not purport to provide legal, accounting, or other professional advice or opinion. If such advice is needed, consult with your attorney, accountant, or other qualified adviser.

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